Headlines

Jewelry Sector Takes a Hit

Zales shutters 118 retail locations; Bailey, Banks & Biddle operator files for bankruptcy

Published

15 years ago

August 10, 2009

VMSD Staff

Zale Corp. (Irving, Texas), which operates such brands as Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda, closed 118 retail locations in the fiscal fourth quarter due to underperformance.

For the 2009 calendar year, the company has closed 191 locations, including 160 retail stores and 31 kiosks. It operates 1931 remaining retail locations.
Another jewelry retailer, Finlay Enterprises Inc. (New York), which runs the Bailey Banks & Biddle chain, filed for bankruptcy protection last week. Finlay, which also operates the Carlyle and L.Congress jewelry retail chains and jewelry departments at The Bon Ton stores, plans to liquidate its assets if it receives no better offers at an Aug. 31 bankruptcy auction.

Zale had sold the 177-year-old Bailey Banks & Biddle chain to Finlay in 2007 for $200 million. It still needs to settle some rent obligations for 34 Bailey, Banks & Biddle locations and is still trying to negotiate agreements for the 11 remaining locations.

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